Marketing Communications

MARKETING COMMUNICATIONSMARKETING COMMUNICATIONS

- The Marketing Environment- Marketing Communication and its Process- Target Market- Marketing Mix- Integrated Marketing Communications- Buyer Behavior- Marketing Research- Product Planning and Management- Brand Management- Packaging- Pricing- Distribution - Promotional Strategy- Evaluation - MARKETING APPLICATIONS IN SPECIAL FIELDS- Regulation and Ethics

MARKETING ENVIRONMENTMARKETING ENVIRONMENT

• Marketing

• Markets

• The Marketing Concept

• Marketing Functions and Processes

• History of Marketing

• Environmental Analysis

• Marketing Strategy and Planning

• Marketing is the process of planning and executing development, pricing, promotion and distribution of goods and services to achieve organizational goals.

• A ‘Market’ is made up of all the people or organizations who want or need a product and have the willingness and ability to buy.

• Products may be goods, services, ideas, places or persons. (Finch, p. 1)

• The aim of marketing is to know and understand customer so well that the product or service fits him and sells itself(Kotler and Armstrong, p.4)Needs: it is a state of felt deprivation in a personWants: forms that human needs take when shaped by culture and individual personalityDemands: wants become demands when packed by buying power.Exchange and transaction

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....MARKETING MANAGEMENT PHILOSOPHIES....MARKETING MANAGEMENT PHILOSOPHIES• Production Concept: Holds that consumers will favor products that are available and highly

affordable and therefore management should focus on improving production and distribution efficiency.

• Product concept: Consumers will favour the products that offer the most quality, performance, therefore the organization should devote its energy to making continuous product improvements.

3) Selling Concept: Consumers will not only buy enough of the organization’s products unless the organization undertakes a large selling and promotional effort.

4) Marketing Concept: Achieving organizational goals depend on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

5) Societal Marketing Concept: Organization should determine the needs, wants and interest of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the society’s and consumers’s well being.

The Marketing Concept. A company should satisfy consumer wants and needs at a profit. The company should aim all its efforts toward giving its customers the services and products thet want or need.

The Marketing Concept is a customer-oriented business philosophy which stresses customer satisfaction as the key to achieve organizational goals. The philosophy maintains that all of the organizations’s efforts should be focused on identifying and satisfying the wants and needs of the customer.

....MARKETING CONCEPTS OF 1950s....MARKETING CONCEPTS OF 1950sMarketing MixProduct Life CycleBrand ImageMarket SegmentationMarketing ConceptMarketing Audit

....MARKETING CONCEPTS OF 1960s....MARKETING CONCEPTS OF 1960s4 P’s classificationMarketing MyopiaLifestylesBroadened Concept of Marketing

....MARKETING CONCEPTS OF 1970s....MARKETING CONCEPTS OF 1970sSocial MarketingPositioningStrategic Marketing

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Societal Marketing MacromarketingService Marketing

....MARKETING CONCEPTS OF 1980s....MARKETING CONCEPTS OF 1980sMarketing WelfareInternal MarketingGlobal MarketingLocal MarketingDirect MarketingRelationship MarketingMegaMarketing

Marketing Functions

• Environmental Analysis

• Consumer Analysis

• Product Planning

• Price Planning

• Promotion Planning

• Place (physical distribution) planning

Marketing Mix (4 P’s) A combination of four variables which comprise an organization’s marketing program• Product• Price• Promotion• Physical distribution

• Market Segmentation: The idea is to look at consumer response behavior. Marketer wants to know what makes an individual respond to a given cue in the environment. Each group of consumers that responds in the same way is placed in a subgroup, or market segment (Ogden, p. 9).• It is the process of dividing the total market into distinct submarkets or groups based on similarities in their wants, needs, behaviour or other characteristics

Market Segments are groups of customers who are similar to each other in a meaningful way and who will respond to a firm’s marketing mix similarly.

Target MarketA group of people toward whom the organization or company decides to aim its marketing efforts.They are:

- Willing to buy the product,

- Are able to buy the product.

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Target Market is one particular group of potential customers that the organization seeks to satisfy with a product.

Market at which the organization directs a marketing mix. Different marketing mixes are developed for each target market to satisfy their specific needs and

wants (Finch, p. 3)

Product Differentation exists when a product or brand is perceived as different from its competitors on any tangible or intangible characteristics.

It also refers to the strategy in which one firm promotes the features of its product over competitor in the same market.

Product Positioning: It refers to the decisions involved in shaping the product’s image in the customer’s mind. These images are defined relative to competing products.

Consumer perceptions are the critical issues, not the actual differences between products!!!

.....Product PositioningOnce you have identified target markets and have established marketing objectives and strategies,

you must develop market positioning for your product.

By that you create an image in the minds of the target market, establishing the desired perception of product relative to the competition (

Positioning Approaches:

• Attributes: a product or trait characteristic that sets the product apart form its competitors

• Competitors: contrasting a particular brand relative to a competing brand

• Use-or application: positioning based on an application or particular use4) Price-quality: Using price- quality to set a product apart from its competitors5) Product user: distinguishing a product from its competitors based on who uses it6) Product sales: identifying a particular product by the product class within which it wishes to

compete7) Cultural symbol: identifying a product with a well-known cultural symbol.

Marketing PlanIt is the organization’s statement of marketing strategy and the activities required to carry out the

strategy. It identifies target markets and provide general guidelines for developing the marketing mix.

• Situation Analysis: identification of company’s strengths and weaknesses as well as the opportunities and threats posed by the marketing environment.

2) Marketing Objectives: Based on Situation Analysis, MO for specific products or markets are established.

Marketing Objectives specify the goals of the firm.Both qualitative (market leadership, corporate image) andQuantitative (sales, profit, market share)

MO reflect the role of marketing in achieving company-wide objectives (

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10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNINGStep 1 BUSINESS REVIEWCompany and Product ReviewTarget Market AnalysisSales and Market Share AnalysisProduct Awareness and AttributesPurchase Rates and Buying HabitsDistribution- PenetrationPricingComparative Competitive AnalysisDemand AnalysisStep 2 PROBLEMS OPPORTUNITIESStep 3 SALES OBJECTIVESStep 4 TARGET MARKETStep 5 MARKETING OBJECTIVES AND STRATEGIESStep 6 POSITIONINGStep 7 MARKETING MIX IMPLEMENTATION TOOLSProduct/ServiceBrandingPackagingPricingDistributionPersonal SellingPromotionAdvertising MessageAdvertising MediaMerchandisingPublicityStep 8 MARKETING PLAN BUDGET AND CALENDARStep 9 EXECUTIONStep 10 EVALUATION(Hiebing, Cooper, 1992)

REVIEW QUESTIONSREVIEW QUESTIONSWhat is marketing?What is marketing concept?Discuss positioning and give examples.Give an outline of a marketing plan.What is product differentiation?Give examples of marketing objectives.

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MARKETING COMMUNICATIONS PROCESSMARKETING COMMUNICATIONS PROCESSSchramm (1960)Sender is the originator of the message. Agents, consultants. SOURCE OF COMMUNICATIONMessage:actual information and impressions that the sender wishes to communicate. CONTENT

OF COMMUNICATIONMedia are vehicles or channels used to communicate the message without which there can be no

communication. Media can take many different forms. CARRIER FOR MCReceiver who receives the message

Foundation of our understanding of MC

Sender: Who?

Message:Says what?

Media: By which means?

Receiver: To whom with what effect

One-way communications: Communications from a sender to a receiver with no feedback and dialogue.

Two-way asymmetric communications: Communications from a sender to a receiver with little or delayed feedback, producing a non-direct dialogue.

Two-way symmetric communications: Direct dialogue between a sender and receiver of communications.

MCP is description of principal elements involved in the process of communication between sender and receiver.

Encoding Decoding Noise Interference Feedback

SOURCE CHARACTERISTICSSOURCE CHARACTERISTICS

• CREDIBILITY

• ATTRACTIVENESS

• POWERSENDER CREDIBILITYSENDER CREDIBILITY

The degree to which communications are believedIt has 3 components• attractiveness (similarity, aspired similarity, familiarity• trustworthiness• expertise

REVIEW QUESTIONSREVIEW QUESTIONS

• What is the foundation of MC process?

• Name and discuss the components of sender credibility.

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• What is the difference between noise and interference.

....MARKETING ENVIRONMENT....MARKETING ENVIRONMENTEnvironmental AnalysisIt is always dynamic and changing

1)Macroenvironmental factors. Both internal and external factors. (Old way is more external.)2)Microenvironmental factors. It is immediate environment and surroundings in which MC occurs

Macroenvironmental factors

• Demographics

• Economic conditions

• Competition

• Social and cultural factors

• Political and legal factors (government)

• Technological factors (Finch, 4)

Macroenvironmental factors changes affecting MC

• Computer technology

• Communications technology

• Fragmentation of media

• Social change (demographics, lifestyles, attitudes, values, spending,expectations)

Macroenvironmental factors changes affecting MC5) Changing roles and expectations of marketing6) Manufacturing technology system7) Changing national and international economies8) International competition and markets- global brands9) MC production technology10) MC industry regulations

Microenvironmental factors are external forces which impact each specific company uniquely. These forces are largely uncontrollable, but an organization can influence these factors to a specific degree.

Microenvironmental factors

• Suppliers

• Marketing intermediaries

• Target market

UNDERSTANDING MACROENVIRONMENTUNDERSTANDING MACROENVIRONMENTPRESTCOM extended environmental and organisational analysis frameworkSWOT organisational analysis framework PEST environmental analysis

REVIEW QUESTIONSREVIEW QUESTIONS

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• Name some of the microenvironmental factors.

• Define SWOT

• Define PRESTCOM.

CHANGING ROLE AND EXPECTATIONS OF MARKETINGCHANGING ROLE AND EXPECTATIONS OF MARKETINGRelationship marketingLoyalty marketingDatabase marketingPush strategyPull strategy

MARKETING COMMUNICATIONSMARKETING COMMUNICATIONSAdvertising, promotion, corporate communications????

‘All the promotional elements of the marketing mix which involve the communications btw. an organization and its target audiences on all matters that affect marketing performance’ ‘Communication with target audiences on all matters that affect marketing and business performance. Involves the management of marketing communication mix.’

Target market/target audienceFor marketing to be successful many people have to be involved in the communication process both within the organization and outside it.

Therefore: target audience: ‘those individuals or groups who are identified as having a direct or indirect effect on business performance and are selected to receive marketing communications’

TARGET MARKET- TARGET AUDIENCETARGET MARKET- TARGET AUDIENCETarget markets describe customers, people who buy goods and services. They also describe consumers who use or consume goods/services.Publics term preffered by PR people.‘Referring to the many target audiences that communications may be focused towards.’SegmentGroup of individuals who are expected to respond in a similar way to an organization’s marketing activity.

...MARKETING COMMUNICATIONS OR......MARKETING COMMUNICATIONS OR...Promotions mix, promotional mix Definition of marketing communications mix: the range of activities/tools available to an organisation to communicate with its target audiences on all matters that affect business performance.

Marketing communications is wider than promotionsPromotion is a short term for sales promotion Popular

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...THE MARKETING MIX...THE MARKETING MIX Marketing Communications Advertising

Marketing mix: ‘range of marketing activities/tools that an organization combines and implements

to generate a response from the target audience’4Ps• Product• Place• Price• Promotion

Wayne deLozier (1976) was one of the first authors to strongly feature the role played by all the elements in the marketing mix in MC process

Product both physical and in packaging termsPhysical: size color, material, shape type of packagingPlace refers to the channels of distributionStore image, atmosphere, location, layout point of sale displaysChannel strategy intensive, selective, exclusive (p. 207)PricePromotion

CORPORATE COMMUNICATIONS VS MARKETING COMMUNICATIONSCORPORATE COMMUNICATIONS VS MARKETING COMMUNICATIONS Generic term is corporate communications of which MC is a part• Management Communication• Organizational Communication• Marketing Communications (van Riel 1995)

REVIEW QUESTIONSREVIEW QUESTIONS1) Give a definition of marketing communications2) What is corporate communication?3) What is meant by marketing mix?4) What are the types of segmentation?

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INTEGRATED MARKETING COMMUNICATIONSINTEGRATED MARKETING COMMUNICATIONSIMC – put the customer in the center of marketing activitiesIntegration of promotional mix elements so they work in harmony or synergy with each other.Synergy: the effect of bringing together MC elements in a mutually supportive or enhancing way

so the resulting whole is greater than the sum of its parts. (Pickton and Broderick, p. 64)Definitons: HANDOUT 4.1

You may use more than one creative message or image, but they should be consistent

FEATURES OF INTEGRATED MARKETING COMMUNICATIONSFEATURES OF INTEGRATED MARKETING COMMUNICATIONS• Clearly identified marketing communications objectives which are consistent with other

organsiationla objectives • Planned approach which covers the full extent of marketing communication activities in a

coherent and synergistic way• Range of target audiences• Management of all forms of contact• Effective management and integration of all promotional activities and people involved• Incorporate all product/brand and corporate marketing communications efforts• Range of promotional tools: including personal and nonpersonal tools • Range of messages :Single consistent strategy, but not always a single standardized message.• Range of media: any vehicle not just mass media

FACTORS ENCOURAGING IMCFACTORS ENCOURAGING IMC

• HANDOUT 5.1

BARRIERS TO IMCBARRIERS TO IMC• Mindset• Taxonomy and language• Structure of organisations• Elitism• Magnitude of task• Adequacy of budgets• Manager ability• Agency remuneration system

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• Dimensions of integration

ORGANISATIONAL BARRIERS TO IMCORGANISATIONAL BARRIERS TO IMC• Lack of horizontal communication• Functional specialization• Decentralization• Lack of corpoarte direction and communication• Lack of IMC planning and expertise• Lack of budget• Lack of database• Fear of change

STRUCTURES OF IMCSTRUCTURES OF IMCHANDOUT 15.2• Anarchic structure• Client-centered integration structure• Federal integration structure• Agency centered integration structure• Centeralised client and lead agency structure

REVIEW QUESTIONSREVIEW QUESTIONS

• Give a definiton of integrated marketing communications.

• What are the barriers (organizational) to IMC?

• Why has IMC become popular?

BUYER BEHAVIORBUYER BEHAVIOR

The creation of an appropriate marketing mix for a specific target market requires an understanding of consumer preferences and decision-making processes. Marketers also need to be aware of how they can influence consumers’ decision-making thr. the use of marketing mix variables. (Finch, 16)

Involvement refers to the importance of which consumers attach the purchase of a particular product.

There are several factors which may influence level of involvement in a purchase situation.- High-Involvement Decision Making- Low-Involvement Decision Making

High-Involvement Decision Making• Personally important product• Relatively expensive or high price• Lacks relevant information about the product

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• Risks associated with making a bad decision are high.• The product offers potentially great benefits to the buyer(Finch, 17)

Low-Involvement Decision Making is characteristics of frequently purchased, low-priced goods

FACTORS INFLUENCING BEHAVIORFACTORS INFLUENCING BEHAVIOR1) Cultural2) Social3) Personal4) Psychological

1) Cultural- Culture,- Subculture,- Social class

2) Social Factors- Reference groups: primary groups, secondary groups, aspiratinal groups

- Family - Roles and Status

3) Personal Factors- Age and life cycle stage- Occupation

- Economic situation- Life Style- Personality and self concept

4) Psychological Factors- Motivation (Freud, Maslow)- Perception: selective exposure, selective distortion, selective retention.- Learning- Beliefs and attitudes

THEORIES AND MODELS OF BUYER BEHAVIORTHEORIES AND MODELS OF BUYER BEHAVIORBuyer-decision making

• Cognitive perspective

• Behavioral perspective

....THEORIES AND MODELS OF BUYER BEHAVIOR....THEORIES AND MODELS OF BUYER BEHAVIORTOTAL SETAWARENESS SETEVOKED SET

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COGNITIVE MODELSCOGNITIVE MODELS

• Problem definition

• Information search

• Evaluation of alternatives

• Purchase

• Post-purchase behavior

BEHAVIOURAL PARADIGMBEHAVIOURAL PARADIGMWhat is going in the mind is not achievable. The behaviorist approach suggest that stimuli are

predominantly in the environment.MC activities should be focused on creating the correct environmental cues for the individual and

on monitoring the responses to the guide to the future activity (benefits to be gained from the product)

HOW INDIVIDUALS PROCESS INFORMATION FROM THE ENVIRONMENT?HOW INDIVIDUALS PROCESS INFORMATION FROM THE ENVIRONMENT?The interpretation of the encoded messages is dependent upon a range of factors which may lead or may not to an accurate understanding of the messages intended.

ATTENTION- GENERATING DEVICES IN MARKETING COMMUNICATIONSATTENTION- GENERATING DEVICES IN MARKETING COMMUNICATIONS• Movement• Needs• Novelty• Position• Sex• Size• Celebrities• Animals• Babies• Color• Contrast• Design• Fear• Humour• Intensity

ADAPTION/AD-WEAROUTADAPTION/AD-WEAROUT

• Adaption: Doubling the number of messages do not double the number of messages attended to.

• Ad-wearout: The impact of advertisement (or any other MC) declines when it is repeated.

DENOTATIVE-CONNOTATIVE MEANINGDENOTATIVE-CONNOTATIVE MEANING13

• Denotative meaning: A meaning same for everybody

• Connotative meaning: A meaning that is not shared

EG: Strand cigarettes‘You are never alone with a Strand’

THE INFLUENCES ON THE INFLUENCES ON DECISION-MAKINGDECISION-MAKING

Personal Influences Social Influences• Demographic Reference group• Situational Culture/subculture• Involvement

Psychological Influences• Perception• Ability, knowledge and experience• Personality• AttitudesHANDOUT 13.3

BUYER- DECISION PROCESS FOR NEW PRODUCTSBUYER- DECISION PROCESS FOR NEW PRODUCTS5 Stages in adopting a new product

• Awareness

• Interest

• Evaluation

• Trial

• Adoption

INDIVIDUAL DIFFERENCES IN INNOVATIVENESSINDIVIDUAL DIFFERENCES IN INNOVATIVENESSInnovators: they are risk takers and tale the lead with the new products and experiencesEarly adoptersEarly majorityLate majorityLaggards: conservative

Refer to: adopting products at different stages in life cycles. HANDOUT 14.4

ORGANIZATIONAL MARKETS AND BUYER BEHAVIORORGANIZATIONAL MARKETS AND BUYER BEHAVIOR

• Industrial markets

• Reseller markets

• Government markets

Characteristics

- Have fewer or larger buyers

- More geographically concentrated.

REVIEW QUESTIONSREVIEW QUESTIONS

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• Compare and contrast high-involvement vs low-involvement decision making.

• What are the attention-generating devices in MC

• Define adaption and ad-wearout

• Describe either cognitive or behavioral perspectives in buyer- decision making.

• Give an example of connatative meaning.

• What is meant by ‘innovators’ and laggards?

MARKETING RESEARCHMARKETING RESEARCH

• Marketing Informations Systems

• Marketing Research Process

• Research Design and Data Collection

• Marketing Information System (MIS)MIS are the methods and procedures used to collect, analyze, store and distribute marketing data and information on a systematic basis.

Marketing Research Process

• Identify new opportunities

• Explore or define problems confronting the firm

• Evaluate and refine marketing mix

• Study buyer behaviour

Procedure to conduct Market Research

• Problem definition

• Situation analysis(primary data/secondary data)3) Coding4) Recommendations

• Research Design and Data Collection

• Sampling

• Primary vs secondary data

• Survey research

• Focus group

• Observation

• Experimental research

• Simulation

• Primary vs Secondary Research15

Primary research gathers data at first hand.Secondary data is any information not gathered for the immediate study at hand, but already

collected for some other purpose. p. 350

....MARKETING RESEARCH....MARKETING RESEARCH

CharacteristicsFits firm’s needsCost of acquiringSpeed in collectingMost recent information possibleMultiple sourcesSecrecy from competitors

Primary/SecondaryYes/ SeldomExpensive/Low costSlow/QuickYes/ No

No/OftenYes/No

....MARKETING RESEARCH....MARKETING RESEARCH

Characteristics In person Mail PhoneResponse Rate High Low HighCost Highest Low HighInterviewer bias Yes None YesInteractive Yes No YesResp will to spendtime Yes No NoSpeed of data col. Fast Slow FastestAnonymity of res. LowestHigh Low

• Qualitative Research HANDOUT 18.5Qualitative research is used to uncover concepts the why of a subject.Quantitative research is used to measure variables and their relationships-the how many questionp. 352

Market research is the means of providing accurate, impartial information to marketing decision makers and is necessary for the development and evaluation of marketing communications.

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REVIEW QUESTIONSREVIEW QUESTIONS

• What is primary and secondary research?

• What is qualitative research?

• Compare characteristics of in-person, mail and telephone research.

TARGET MARKETSTARGET MARKETS• Market Characteristics- Who exactly are the consumers most likely to become users of a brand- Where are they located?- How they can be reached most efficently with MC tools?- When is the best time in the consumer’s life to apply the tools?

• Demographics• Behavioral Dimensions• Market Segmentation

To achieve the greatest benefit and competitive advantage from target marketing, it is essential that the characteristics used to identify each market is measurable. (Finch, 14)

1) Demographics

2) Behavioral Dimensions

.....MARKET SEGMENTATION.....MARKET SEGMENTATIONThe process of dividing a market into homogeneous segments using one or a range of alternative segmentation methods, each segment being composed of customers or consumers sharing similar characteristics.

.....MARKET SEGMENTATION.....MARKET SEGMENTATION• To define the market and find segments with it• To select the most profitable segments that can be served the most effectively and efficiently

by the company’s resources (targeting)• To communicate to that segment to appeal to their specific wants and needs better than

competitors (positioning)(p. 384)

TYPES OF SEGMENTATIONTYPES OF SEGMENTATIONHANDOUT 20.2

CHARACTERISTICS OF MARKET SEGMENTSCHARACTERISTICS OF MARKET SEGMENTS• Measurable• Accessible or reachable through existing channels which are advertising media, channels of

distribution or sales force

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• Each segment must be large enough to be profitable. (factors affecting profitability nature of industry, size of the firm, pricing structure)

SEGMENTS AS TARGET MARKETSSEGMENTS AS TARGET MARKETS

• Single segment or concentration strategy

• Multiple segmentation strategy-differentiated marketing

• Undifferentiated or mass marketing

REVIEW QUSTIONSREVIEW QUSTIONS

• What is meant by single segment or concentration strategy?

• What is market segmentation?

• What are the characteristics of market segments?

PRODUCT PLANNING AND MANAGEMENTPRODUCT PLANNING AND MANAGEMENT

Product Classification: May be goods or servicesConsumer/industrial- business goodsTargeted toward individuals and household for final consumption/Typically purchased for resale,

operational needs or for use in further productionConsumer Goods:Convenience/ shopping/speciality goods

...PRODUCT PLANNING AND MANAGEMENT...PRODUCT PLANNING AND MANAGEMENTServices: consumer/industrial depending on the customers servedCharacteristics

• Often intangible

• Usually perishable

• Frequently inseparable from the individuals who provide it

.....PRODUCT CONCEPTS.....PRODUCT CONCEPTSTangible product consists of features which can be precisely specifiedExtended or Augmented product includes both the tangible and intangible elments of a product Product Line: Consists of a group or set of closely related items. Product Mix: A firm’s product mix is comprised of all the product lines that it offers.

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.....NEW PRODUCT PLANNING.....NEW PRODUCT PLANNINGNew Product Opportunites

• Imitative or me too products

• Modifications of existing products

• Minor innovations

• Major innovations

• Idea generation

• Product screening and Concept testing

• Business analysis and Product development

• Test marketing and commercialization

.....PRODUCT ADOPTION AND DIFFUSION .....PRODUCT ADOPTION AND DIFFUSION Product Adoption process describes the stages which consumers go through learning about the new

productsIt starts with the prospect’s initial awareness of the product. If interested, he/she will evaluate the

perceived merits of the product and develop an opinion toward trying the product. PA takes place when the buyer decides to use the product regularly.

Product Diffusion Process describes the typical rate of adoption exhibited by consumers in response to new products

• Innovators

• Early Adopters

• Early Majority

• Late Majority

• Laggards

.....PRODUCT LIFE CYCLE.....PRODUCT LIFE CYCLEIt describes a pattern of changes which is characteristics of most products from their inception to

their departure from the market. 1) Introduction 2) Growth3) Maturity4) Decline

.....PRODUCT PLANNING AND MANAGEMENT.....PRODUCT PLANNING AND MANAGEMENTFamily brand when the same brand is applied to several productsIndividual Brand can be assigned each product when there exists significant variation in product

type and qualityGeneric products: have no brand name at allLicensed Brand is a well established brand name which other seller pay to use.Trademarks are brand names, marks or characters used to identify products

REVIEW QUESTIONSREVIEW QUESTIONS

• What is family brand?

• What is product adoption?

• What is product life cycle? Describe the characteristics of the stages.19

• What are consumer goods?

BRAND MANAGEMENTBRAND MANAGEMENTBranding is the strategy to differentiate products and companies and to build eceonomic value for

both the consumer and the brand ownerBrand: the totality of what the consumer takes into account before making a purchase decision Growth of branding after the Civil War in USA with the growth of national firms and intl.

advertisingEg. Ranch

HANDOUT 2.1

The aim of branding is to create impressions that differentiate products and companies by saying that one is not just different from the rest, but in some respect better than the rest (Pickton and Broderick, p. 23)

BRANDING STRATEGIESBRANDING STRATEGIESA brand can identify one item, a family of items or the seller• Corporate umbrella branding: the organisation and all its products are branded under the same

corporate name• Family umbrella branding: the organization has a corporate brand and a separate brand for its

products• Range branding: a number of related products are grouped together under one brand name• Individual branding: Each product is branded separately

(Pickton and Broderick, p. 24)SEVERAL DEFINITIONSSEVERAL DEFINITIONS

Corporate Personality: It is the soul, the persona, the spirit, the culture of the organisation manifested in some way.(Olins, 1990)

Relatively enduring but...Mission statementsCorporate personality is the raw material of the corporate identity.

Corporate Identity is the means by which CP is projected, transmitted or communicated.Outward signs: clothes and mannerism of the organisation.CI is the basis on which the organisation is known and understood.Deliberate/planned, intentional/unintentional, managed well or badly. (Pickton and Broderick, p. 25)

Corporate Image is the impression created by the corporate identity. Perception held by the organisation by its audiences.

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Identity is the sum of all the ways a company chooses to identify itself to all its publics. Image is the perception of the company by its publics. (Marguilles, 1977).CI is what is felt and thought about an organization.

Q: Is corporate image a single entity?

COMPONENTS OF BRANDCOMPONENTS OF BRAND

Brand nameBrand logoBrand identity manual

Golden Arch???

CHARACTERISTICS OF GOOD BRAND NAMESCHARACTERISTICS OF GOOD BRAND NAMES• Suggest sth. about the product’s benefits• Short and simple• Easy to spell, read and pronounce• Pleasant sounding• Distinctive and memorable• Appropriate to new products which may be added to the line at a later date• Legally available for use

(p. 31)BENEFITS OF BRANDINGBENEFITS OF BRANDING

HANDOUT 2.6

BRAND EQUITY- BRAND VALUEBRAND EQUITY- BRAND VALUE

Brand Equity is the value of the brand’s name, symbols, associations and reputation to all target audiences who interact with it. The value of company’s names and symbols

Brand Value: The financial expression of brand equity.

Key components that create brand equity are: brand description, brand strength and brand future

MEASURING BRAND EQUITYMEASURING BRAND EQUITYHANDOUT 2.9

There is no one single and consistent framework .

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MANAGING BRAND EQUITYMANAGING BRAND EQUITY

• Brand description: This is what the brand represents depending on the associations, values, and beliefs the customer has about the brand.It includes brand’s distinctiveness, perceived quality and the esteem with wihich it is held in the eyes of the consumer.

MANAGING BRAND EQUITYMANAGING BRAND EQUITYBrand associations: Through the process of associations, brands have value. In many product

categories, there is little tangible differentiation. Task of the marketing communicator is to create a sense of difference, a sense of value and a competitive advantage.

When customers have good associations with the brand, the brand is likely to be purchased higher.

Brand associations: Eg. Nike

- athletic shoes

- durable

- Michael Jordan

- comfort

MANAGING BRAND EQUITYMANAGING BRAND EQUITYBrand values• Functional appeal: Brand’s specific attributes or benefits capable of solving consumer’s

current consumption-related problems• Symbolic appeal:Consumers’ desire for self-enhancement, group membership, affiliation and

belongingness• Experiential appeal: the brand’s appeals to the consumers’ desire for sensory pleasure, variety

and cognitive stimulation

2) Brand StrengthThe prominence and relative dominance of brand. Levels of awareness, brand history and loyalty

are important elements within this context.

2) Brand StrengthGenerating awareness is the 1st step in any communication campaign. Awareness has to be created

before interest, desire and action are created.Brand heritage is the corporate experience and reputation that a brand has acquired over time

including its orgins and advertising developmentBrand loyalty: Core component of brand loyalty is the customer’s willingness to repeat purchase.

HANDOUT 2.12 Loyalty ladder

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3) Brand FutureThis reflects a brand’s ability to survive future changes in legislation, technology, retail structure,

and consumer patterns. It also indicates growth potential eg. niche to mainstream or local to global.

BRAND PARITYBRAND PARITYOccurs when there is perception that most products and services are essentially the same.

BRAND MANAGEMENTBRAND MANAGEMENTBrand Management A group of core and peripheral brand values must be identified. An understanding of the distinct capabilities that distinguish the brand from competition is necessary to ensure effective positioning. Brand values have to be effectively and efficiently be communicated to the target audience. To manage the brand values over time.

BRAND FAMILIARITYBRAND FAMILIARITY

• Brand insistance

• Brand preference

• Brand recognition

• Brand non-recognition

• Brand rejection

REVIEW QUESTIONSREVIEW QUESTIONS

• Define these terms:corporate personality, corporate identity, corporate image.

2) What are the characteristics of a good brand name?3) What is brand equity?4) What is brand preference?

PACKAGINGPACKAGINGPackaging serves valuable functions for both buyers and sellers

Functions1)Protection2)Promotion3)Information

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...PACKAGING...PACKAGINGThe ‘clothing’ the product appears in. 3 major aspects of the visual impact of packaging:

• Attractiveness

• Recognition

• Differentiation

...PACKAGING FEATURES...PACKAGING FEATURES Colour

Typography

Logo

Type/material

Shape and structure

Label or mark

Size

REVIEW QUESTIONSREVIEW QUESTIONS1) What are the functions of packaging? Briefly describe them.

PRICINGPRICINGFactors to consider when setting prices:

• Internal Factors: marketing objectives, marketing mix, strategy, costs and organization

• External Factors: market and demand, competition, environmental factors.

PRICING IN DIFFERENT MARKETSPRICING IN DIFFERENT MARKETS

• Pure competition

• Monopolistic competition

• Oligopolistic competition

• Pure monopoly

CONSUMER PERCEPTIONS OF PRICE AND VALUECONSUMER PERCEPTIONS OF PRICE AND VALUEEg. Hamburger...

Good pricing begins with analyzing consumer needs and price perceptions.

COMPETITORS PRICES AND OFFERS and OTHERSCOMPETITORS PRICES AND OFFERS and OTHERS

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Benchmark

Economic conditionsResellersGovernment

NEW PRODUCT PRICING STRATEGIESNEW PRODUCT PRICING STRATEGIESPrice Skimming is a strategy which introduces new products at high prices.

Penetration Pricing uses low introductory prices to gain a large share of market more quickly. (This is more appropriate for new products which are similar to competing brands.)

PRICING AN IMITATIVE NEW PRODUCTPRICING AN IMITATIVE NEW PRODUCTIT MUST DECIDE WHERE TO POSITION THE PRODUCT ON QUALITY AND PRICE

Eg.

PRICE ADJUSTMENT STRATEGIESPRICE ADJUSTMENT STRATEGIES1) Discount Pricing and Allowances2) Discriminatory pricing3) Psychological Pricing4) Promotional Pricing5) Geographical Pricing

...PRICING...PRICINGInfluence of price:High prices relative to competing products convey impressions of qualityLow prices can convey cheapness and poor qualityThe value of offering sales and the use of psychological pricing.

REVIEW QUESTIONSREVIEW QUESTIONS

• Discuss influence of pricing on consumers.

• What is price skimming?

• What are the factors to consider when setting prices?

DISTRIBUTIONDISTRIBUTIONCompanies choosing to distribute their goods and services directly to end customers and users face a very different communications task than those who operate through intermediaries such as agents, wholesalers and retailers.

NUMBER OF CHANNELSNUMBER OF CHANNELS1) Zero-level channel2) One-level channel3) Two-level channel

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4) Three-level channel

INFLUENCES ON CHANNEL DESIGNINFLUENCES ON CHANNEL DESIGN1) Customer characteristics2) Product characteristics3) Customer characteristics4) Middlemen characteristics5) Competitor channels6) Environmental factors.

....DISTRIBUTION....DISTRIBUTIONThe longer the distribution chain becomes and the greater the number of distribution systems used, the more challenging the MC effort becomes

Push Strategy: Utilizes promotional efforts to secure the cooperation of intermediaries. Sales promotion, persoanl selling and advertising are directed towards persuading intermediaries

Pull Strategy: Generates consumer demand for the product as a means of securing support within the channel. Promotional efforts are targeted to the final consumer.(more appropriate for new products)

REVIEW QUESTIONSREVIEW QUESTIONS1) Compare push and pull strategy.

INFLUENCES ON CONSUMER PERCEPTIONINFLUENCES ON CONSUMER PERCEPTIONPRODUCT: quality, styling, packaging design, brand name, guarantees and other featuresPRICE: discount pricing, extended credit, list price, payment periodPROMOTION: advertising, personal selling, sales promotion, and PRPLACE: distribution channels/coverage and geographic location

PROMOTIONAL STRATEGYPROMOTIONAL STRATEGY• Promotion Planning• Budget• Advertising• Publicity and Public Relations• MPR (Marketing PR)• Personal Selling• Sales Promotion, merchandising and point of sale• Sponsorhip, Event Marketing• New Media• Direct marketing• Cause- Related Marketing• Product Placement• Ambush Marketing• Exhibitions and Trade Shows

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PROMOTIONAL STRATEGYPROMOTIONAL STRATEGYPromotion Planning. It means that the firm identifies the most appropriate Promotion Mix,

Objectives and Budget

Promotion Mix is comprised of those elements which contribute to the firm’s overall communications program

Promotion Objectives: May addres three goals within the marketing mix. INFORM/PERSUADE/REMIND

BUDGETBUDGET Percentage of sales method

Percentage of profit method

Objective and task method

Competitive match or follow up the leader model

All you can afford model

SWAG Method

MC MEDIAMC MEDIAMC media are all forms of media that can transmit marketing communication messages whether

focused at a mass audience or at an individualThe selection of right media is fundemental and vital to the success of MCA task of media planners is to reach the right audiences with the minimum wastege but with

maximum effect.Internet no geographical boundaries global scale low costPackaging has MC impactWord of mouth is the process by which messages are communicated verbally form one person to

the other. Anybody talking about an organization or its product is enagaging in WOM.

CHARACTERISTICS OF MEDIACHARACTERISTICS OF MEDIA Reaching a mass market Reaching a highly defined niche Creating awareness Attracting and holding attention Creating impact Developing a strong image Suitability for enhancing the brand Encouraging direct action: enhancing credibility and prestige Conveying detailed information Use as a reference source Appealing to many senses Create associations with certain values Creating favourable trade reaction being flexible in its us as a marketing communication media vehicle Suitability as a primary medium Availability Longevity

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CHARACTERISTICS OF MEDIACHARACTERISTICS OF MEDIAHANDOUT 11.3

ADVERTISINGADVERTISINGAdvertisingThe use of mass media by an identified sponsor to deliver communications to target audiences.(Pickton and Broderick, p. 76)Dev. or execution of any reminder, informational or persuasive messages communicated to a

targeted market through a nonpersonal medium. (Ogdan, p. 27)

.....ADVERTISING PLAN.....ADVERTISING PLANAdvertising Objectives are determined by the marketing strategy for the product or firm. These

objectives:• New product intro_ build brand awareness• Establish brand preference • Create and maintain brand loyalty• Market development• Build primary demand- industry sales• Increase product uses• Support the firm’s salesforce• Enhance the firm’s image.

HANDOUT 17.2 Advertising Plan

.....ADVERTISING.....ADVERTISING Must be dynamic

Should develop from a strategic point of view

Creative

Integrated

Must be persuasive and informative

.....ADVERTISING.....ADVERTISINGMedia planning

- Choice of media type

- Selection of vehicles within each medium

Reach/frequency

PUBLICITY AND PRPUBLICITY AND PRPublicity utilizes the mass media. It is free but it must be directed. Publicity is unpaid and therefore does not have control over the content.It is a subfunction of PR

..... PUBLIC RELATIONS..... PUBLIC RELATIONS

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Public Relations is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organization and its publics.

..... PUBLIC RELATIONS..... PUBLIC RELATIONSPublic Relations functions:

• Monitor internal and external publics

• Provide positive information to each public

• React quickly to any shift by any of the publics from the desired position

PUBLIC RELATIONSPUBLIC RELATIONSCorporate PR vs Marketing PRScope of work• Reputation management• Lobbying• Special events• Speech writing• Publication development

PUBLIC RELATIONS TOOLSPUBLIC RELATIONS TOOLS Corporate newsletters Internal communications Media news releases Stockholder correspondance Annual reports Special events Collaboration with internal publics

MARKETING PUBLIC RELATIONSMARKETING PUBLIC RELATIONSMPR is the process of planning, executing and evaluating programs that encourage purchase and consumer satisfaction through credible communication of information and impressions that identify companies and their products with the needs, wants, concerns and interest of consumers.

SCOPE OF MARKETING PUBLIC RELATIONSSCOPE OF MARKETING PUBLIC RELATIONS MPR planning and management Media relations Publicity Publications Corporate communications Public affairs and community relations Lobbying Sponsorship/donations Events management Crisis management Research and analyis

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MARKETING/MPR/CPRMARKETING/MPR/CPRFunctional ResponsabilitiesFunctional Responsabilities

Marketing MPR CPRMarket assess. Product pub. C. media rel.Segmentation Sponsorships Investor rls.Product dev. Special events Gvn rel.Pricing Public service Community rel.Distribution Publications Employee com.Service Media events Public affairsConsumer adv Media tours Advocacy adv.Sales promotion Trade supportSales

MPR TACTICSMPR TACTICSAwardsBooksContest, competion and created eventsChotchkesDemonstrationsExhibitsFan clubs

....MPR TACTICS....MPR TACTICSFestivalsGrand openingsHotlinesInterviewsJunketsKey issues

....MPR TACTICS....MPR TACTICSLuncheonsMeetingsMuseumsNewslettersOfficial endorsementProduct placement

....MPR TACTICS....MPR TACTICSPublic service announcementQuestionnaires

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Radio- trade for mention contestsRoad showsSampling of products SymbolsToursThonsVehicles

....MPR TACTICS....MPR TACTICSVNRsWeeksExpert columnsYouth programs Zone programs

....MPR OBJECTIVES....MPR OBJECTIVES Reinforce advertising and promotion

Win consumer trust

Create new news about old products

Celebrate special occasions

Defend products at risk

PERSONAL SELLINGPERSONAL SELLINGPersonal Selling is utilized to generate the benefits of one-to-one communication. Dialogue so advantage of persuasion.Respond directly to needs and feedback(most expensive method per contact)

.....PERSONAL SELLING.....PERSONAL SELLINGSeling process is a sequence of stages which are essential to effective personal selling

• Prospecting• Pre-approach• Approach• Presentation• Meeting objections• Closing the sale• Follow-up

.....PERSONAL SELLING.....PERSONAL SELLINGForms

• Trade selling

• New business selling

• Retail selling

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• Telemarketing

.....PERSONAL SELLING.....PERSONAL SELLING

• Hard Selling

• Soft Selling

• Consultative Selling

SALES PROMOTIONSALES PROMOTIONSales Promotion is associated with free offers, price deals, premium offers, and other promotions

including merchandising, point-of sale displays, leaflets and product literature. Excludes adv, PR and personal selling

Consumer-directed Intermediary-directed

GROWTH OF SALES PROMOTIONGROWTH OF SALES PROMOTION• Changing locus of control from manufacturers to retailers.• Customers’ demand• Emphasis on short term results• Increased brand parity and price sensivity (more affcted by small changes in price)• Reduced brand loyalty• Market fragmentation• Synergy

SALES PROMOTIONSALES PROMOTIONTrade Promotion• Trade allowances• Cooperative advertising• Vendor support programs• Trade contests and incentives• Point of Purchase materials (POP)• Training Programs• Speciality advertising• Trade shows

SALES PROMOTIONSALES PROMOTIONConsumer Sales Promotion• Sampling• Point of Purchase Coupons• In-pack or on-pack coupons• Premiums

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• Price-off promotions• Bonus packs• Refunds or rebates• Contests and sweepstakes• Tie-in promotions• Product warranties or guarantees• Point of purchase displays

ADVERTISING/SALES PROMOTION/ MPRADVERTISING/SALES PROMOTION/ MPRExclusive functionsExclusive functions

ADVERTISING TV commercials TV program sponsorhip Radi6 commercials Nwspaper ads Magazine ads Co-op advertising Business and trade press advertising Direct mail Direct response ads and commercials Outdoor advertising Telephone direct adv. Motion picture advertising Car cards

.ADVERTISING/SALES PROMOTION/ MPR.ADVERTISING/SALES PROMOTION/ MPRExclusive functionsExclusive functions

SALES PROMOTION Couponing

Games, sweepstakes, rebates

Price packs

Prizes

Premiums and incentives

.ADVERTISING/SALES PROMOTION/ MPR.ADVERTISING/SALES PROMOTION/ MPRExclusive functionsExclusive functions

MARKETING PUBLIC RELATIONS News conference Media tours Newspapaer publicity Radio publicity Magazine publicity Television publicity Seminars and symposiums Surveys

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.ADVERTISING/SALES PROMOTION/ MPR.ADVERTISING/SALES PROMOTION/ MPROverlapping functionsOverlapping functions

ADV SP MPRAdvertorials ........Promotional adv .....Free standing inserts ......In-store media ......POP ......Tie ins ...... ........Contests ....... ........Special events ....... .........Booklets and brochure ....... .........Public service tie-ins ....... ..........

ADVERTISING/SALES PROMOTION/ MPRADVERTISING/SALES PROMOTION/ MPROverlapping functionsOverlapping functions

SP MPRTrade shows and exhibitsSampling DemonstrationsParadesFestivalsSports eventEntertainment sponsorhipAV presentationsMeetings and conventions

NEW MEDIANEW MEDIAUsually mosty associated with new electronic media such as the Internet, Interactive TV and electronic media.

Cybermarketing term used to describe marketing activities using the new mediaMethods used in cybermarketing activities are• multimedia, computer animation and virtual reality• The Internet and the WWW• Digital and interactive television• CD-ROM/DVD

Cybermarketing benefits1)Saves money and helps stretch the MC budget2) Creates more direct access to customers3) Customers are in conrol of the purchasing power4) Rich information and interactive5) Communication can be on line or offline6) Offers instant reach, local, national or international7) Equal access for business8) Can be continuously available.

Marketing uses of the Internet (Keeler 1995)• Sending messages

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• Transferring files• Monitoring news and opinions• Searching and browsing• Posting, hosting and presenting informationAnd6) Advertising7) PR and sponsorhip8) Sales promotion9) Direct sales10) Exhibitions11) Marketing Research12) Developing closer links with customers and target groups13) Intranet-extranet

...NEW MEDIA...NEW MEDIAPitfall of the net and the web• Poor targeting capabilities• Cost• Incompatible and marketing messages• Immaturity of the Internet medium• Conservative nature of customers• Communications speed• Search difficulties

DIRECT MARKETINGDIRECT MARKETINGIt is a speciality form of traditional marketing and often fall under advertising.

An interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any time.

...DIRECT MARKETING...DIRECT MARKETINGObjectives

• Retention of current customers

• Inducement of product trial

• Brand switching

• Increase sales or usage volumes

• Sales through direct response(Ogden, p. 105)

....DIRECT MARKETING....DIRECT MARKETINGAllows for personalized communication. It can be utilized with many different media or with just

one. Various forms Direct mail

Telemarketing

Direct-selling

Direct- response advertising (Ogden, p. 29- 107-108)

SPONSORSHIPSPONSORSHIPWhen the company pays money to sponsor someone or some group that is participating in an

activity.

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Objectives• Enhance a company’s image• Increase a firm’s visibility• Differentiate a company from its competitors• Showcase specific goods or services• Help a firm develop closer relationships with current and prospective customers.• Unload excess inventory

GROWTH OF SPONSORSHIPGROWTH OF SPONSORSHIP

• Concern over traditional promotional methods,

• Creation of favorable associations,

• Overcomes linguistic/cultural barriers,

• Wide target audience,

• Overcomes legal barriers,

• Selective targeting. (Pickton and Broderick, p. 513)

SPONSORSHIPSPONSORSHIPSponsorhip is a contribution to an activity by a commercial organzization in cash or in kind with the expectation of achieving corporate and marketing objectives.

(Pickton and Broderick, p. 514)EVENT MARKETINGEVENT MARKETING

Similar to sponsorship, but it occurs when the company supports a specific event.

(Clow and Baack, p.503)CAUSE-RELATED MARKETINGCAUSE-RELATED MARKETING

When a firm ties a marketing program into some kind of charity work or program, goodwill can be generated. Most consumers like the idea of businesses supporting worthy causes.

(Clow and Baack, p. 492)...CAUSE-RELATED MARKETING...CAUSE-RELATED MARKETING

The process of associating an organization with worthy causes. Marketing communications benefits are gained by supporting and being seen support worthwile causes. Realizing commercial advantages as well.

(Pickton and Broderick, p.522)...CAUSE-RELATED MARKETING...CAUSE-RELATED MARKETING

Buy a company’s product and it will make a donation on your behalf to some worthy cause. The purchase of a specific item or service transaction results in a contribution. OR label and coupon redemption.

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(Harris, 1991 p. 239)PRODUCT PLACEMENTPRODUCT PLACEMENT

Product placement is the process of arranging for a company’s products to be seen or referred to in the media, such as during television and radio programs, cinema films, video games etc.

It is a kind of a sponsorhip.

(Pickton and Broderick, p. 501)AMBUSH MARKETINGAMBUSH MARKETING

Organization’ s intentional effort to weaken the effect of another sponsorhip

• Sponsor media coverage

• Sub-category within an event

• Sponsor an individual athlete........

EXHIBITIONS AND TRADE SHOWS EXHIBITIONS AND TRADE SHOWS Less considered areas of MC. Exhibition events bring together buyers and sellers under one roof in

a way that is quite unique.To increase sales either directly on the stand or by follow-up.(Pickton and Broderick, p.616)

....EXHIBITIONS AND TRADE SHOWS ....EXHIBITIONS AND TRADE SHOWS Selling activities or non-selling related activities more important?Enhancing corporate image is seen as the most important non-selling roles of exhibitions and trade

shows.

REVIEW QUESTIONSREVIEW QUESTIONS

• What is MPR? Define and give an example.

• Give examples of sale promotions.

• What is cause-related marketing?

• Give examples of product placement.

• What are the objectives of sponsorships?

• Why is sponsorhip gaining importance?

MC EVALUATIONMC EVALUATIONReasons for evaluation

• Increasing the value and the productivity of the campaign,

• Avoiding mistakes,

• Increasing the effectiveness of strategies and tactics.

MC EVALUATIONMC EVALUATIONReasons for NOT evaluating

• Cost

• Objectivity

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• Time

• Reliability and validity

• What to test(Ogden, 164)

MC EVALUATIONMC EVALUATIONOBJECTIVES To have an effective evaluation you must have objectives that are to be achieved.METHODS Many methods are used to evaluate campaign effectiveness. Think about evaluation prior to the campaign Timing of the evaluations are importantEg. Concept testing, copy testing

MC EVALUATIONMC EVALUATION2 broad categories of evaluation tools:

• Message evaluations

• Evaluating respondent behaviors

MC EVALUATIONMC EVALUATION2 broad categories of evaluation tools:• Message evaluations: are used to examine the creative message and the physical design of the

advertisement, coupon or direct marketing piece. Actors and ind. in advertisements and radio.Consider both the cognitive components associated with an ad (recall, recognition) and peripheral cues (emotions, attitudes)

MC EVALUATIONMC EVALUATION2) Evaluating respondent behaviorsVisible consumer actions including market store visits, inquiries or actual purchases. (measure

using numbers)

MC EVALUATIONMC EVALUATIONSeveral levels when evaluating an advertising program:- short-term outcomes (sales, redemption rates-long-term results (brand awareness, brand loyalty, brand equity- awareness of the overall company- attractive responses (liking the company and a positive brand image)

MESSAGE EVALUATION TECHNIQUESMESSAGE EVALUATION TECHNIQUES1) Concept testing2) Copy testing3) Recall tests4) Recognition tests5) Attitude and opinion tests

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6) Emotional reaction tests7) Physiological arousal tests8) Persuasion analysis

MC EVALUATIONMC EVALUATION1. CONCEPT TESTING

At the initial phase, managers are interested in the concept of the campaign. A good time for it is after market research and situational analysis. Primary objective is to check on strategies.

MC EVALUATIONMC EVALUATIONSeveral components of a marketing communications plan can be evaluated with concept tests.• Copy or verbal component of an adv.,• Message and its meaning,• Translation of copy in an international ad.• Effectiveness of peripheral cues, such as product placement in the ad., • Values associated with an offer or prize in contest.(Clow and Baack, 586)

MC EVALUATIONMC EVALUATION2. COPYTESTING

Is used to evaluate the impact of specific advertisements. The idea is to get feedback on the effectiveness of the specific ads before they are placed in the media. Called as pretesting.

(Ogden, p. 166)MC EVALUATIONMC EVALUATION

3. RECALL TESTInvolves asking the individual to recall what ads he or she reviewed in a given seting or time

period.

• Day-after recall (usually unaided recall) DAR

• Aided recall(Clow and Baack, p. 586)

MC EVALUATIONMC EVALUATION....RECALL TEST- Product name or brand- Firm name- Company location- Theme music- Spokesperson- Incentive being offered- Product attributes- Primary selling point of communication piece.

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(Clow and Baack, p. 588)MC EVALUATIONMC EVALUATION

4. RECOGNITION TESTSInd. are given copies of an ad and are asked if they recognize it or have seen it before. Are asked to

give additional details if they say they have seen the ad. How many saw the ad (recognition test) How many saw and who were interested to read or view the ad (recall test) (Clow and Baack, p. 589)

MC EVALUATIONMC EVALUATION5. ATTITUDE AND OPINION TESTS Deal with both cognitive and affective reactions of an ad. Can be used in conjuction witrh recall and recognition tests. Used to solicit consumer opinions. Opinions are gathered from surveys and focus groups. Also used for evaluation of sales promotions devices.

MC EVALUATIONMC EVALUATION6. EMOTIONAL REACTION TESTSPositive emotions are likely to be remembered. Difficult to measure emotional impacts. One

method: ask questions.Warmth monitor: JoystickThey are self-report instruments.

MC EVALUATIONMC EVALUATION7. PHYSIOLOGICAL AROUSAL TESTSMeasure fluctations in a person’s body functions that are associated with changing emotions.

These tests are:• The psychologalvanometer (perspiration)• A pupillometric test (dilation of a pupil)• Voice-pitch analysis (examines changes in the pitch of person’s voice

MC EVALUATIONMC EVALUATION8. PERSUASION ANALYSISTo appraise the persuasive ability of a marketing communications item.It requires pretest-post test.

MC EVALUATIONMC EVALUATIONBEHAVIORAL MEASURES

• Sales

• Redemption rates

• Test markets

• Purchase simulation tests

• Counting clippings

• Calculating the number of impressions

• Advertising equivalence technique. (AE)

Limitations....EVALUATING THE OVERALL PROGRAMEVALUATING THE OVERALL PROGRAM

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• Market share• Level of innovation• Productivity• Physical and financial sources• Profitability• Manager performance and development• Employee performance and attitudes• Social responsability

REVIEW QUESTIONSREVIEW QUESTIONS

• What is the difference between message evaluation and respondent behavior?

• What is DAR?

• Compare and contrast recognition test and recall test.

• Describe and criticize AE approach?

• Name criteria that can be used to asses the impact of IMC program.

MARKETING APPLICATIONS IN SPECIAL FIELDSMARKETING APPLICATIONS IN SPECIAL FIELDS

• International Marketing

• Nonprofit Marketing

INTERNATIONAL MARKETINGINTERNATIONAL MARKETINGMotivations to internationalise:• Domestic market saturation, making it more expensive to gain market share,• Limits placed on domestic growth in the home country by public policy limiting further

growth in market share of an organization,• Identification of growth or niche opportunities in the international marketplace,• Recognition of higher profits in the international marketplace bcs of differences in

competitive and/or cost structure,....INTERNATIONAL MARKETING....INTERNATIONAL MARKETING

5) Risk distribution across the international marketplace so that the organization is not as susceptible to national economic cycles,

6) Opportunities of buying power consolidation within the organisation through joint-buying agreements.

INTERNATIONAL DIMENSIONS OF MC ENVIRONMENTINTERNATIONAL DIMENSIONS OF MC ENVIRONMENTHANDOUT 8.1 and 8.2: (Coffee)

TV ownership, Internet accessCulture: timeSub-cultureEthnocentrism and xenophilia

STANDARDISATION VS ADAPTATIONSTANDARDISATION VS ADAPTATIONStandardization strategy: the use of similar or identical marketing communications across

countries.

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Adaptation strategy: MC messages and media are changed from country to country to better suit the individual requirements of individual markets.

STANDARDISATION VS ADAPTATIONSTANDARDISATION VS ADAPTATION4 Key Strategies• Global strategy is based on cultural similarities instead of differences. It is adopted if there is

a high degree of homogenity both within a culture and btw cultures.• Global niche strategy: Based on identification of a similar group or groups across countries

UK students to be more similar to students in Greece, France.......STANDARDISATION VS ADAPTATION....STANDARDISATION VS ADAPTATION

3) A multinational strategy: Strategy recognising cultural diversity to develop MC adapted to suit different cultures.

4) Customisation strategy: Recognizes the differences in consumers both within and btw cultures and therefore communicates on in individualised basis.

IMPACT OF INTERNATIONAL CONTEXT ON MCIMPACT OF INTERNATIONAL CONTEXT ON MC1) Symbols, eg. Color. EXHIBIT 10.32) Language: high-text communications/low text communications3) Cultural Values: Hoftede (1980)

HANDOUT 8.6: High Context/Low Context Cultural Values Hoftede (1980)Cultural Values Hoftede (1980)

• Power distance

• Uncertainity avoidance

• Femininity/masculinity

• Individualism/collectivism

HANDOUTNONPROFIT MARKETINGNONPROFIT MARKETING

Marketing principles and practices are applied within a range of nonprofit organizations.Nonprofit marketing include the marketing of

• Persons

• Ideas

• OrganizationsREGULATION AND ETHICSREGULATION AND ETHICS

There can be extreme difficulty in determining what is and what is not ethical especially when the notion of social acceptability changes over time and varies from one culture or country to another.

Perfectly acceptable MC in one country would ve banned another.REGULATION AND ETHICSREGULATION AND ETHICS

Regulation fall into two

• Legal

• Self regulation (in UK more)

REVIEW QUESTIONSREVIEW QUESTIONS

• What are the motives behind international marketing?

• What is standardization?

• Comment on Hofstede.

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• What is nonprofit marketing?

REFERENCESREFERENCESClow, K. E. and Baack, D. (2002). Integrated Advertising, Promotion and Marketing

Communications New Jersey: Prentice Hall.Dommermuth, W.P. (1989) Promotion, 2nd ed. Boston: PWS- Kent Publishing Company Finch, J. E. (1992). The Essentials of Marketing Principles. Research and Education

Association.Harris, T. L. (1991) The Marketer’s Guide to Public Relations New York: John Wiley and Sons.

...REFERENCES...REFERENCESHiebing, R. G. And Cooper, W. S. (1992) The 1-Day Marketing Plan. Chicago: NTC Business

Books.Kotler, P. And Armstrong, G. (1987) Marketing: An Introduction, New Jersey: Prentice HallOgden, J. E. (1998). Developing a Creative and Innovative Integrated Marketing

Communication Plan. New Jersey: Prentice Hall. ...REFERENCES...REFERENCES

Pickton, D. And Broderick, A. (2001). Integrated Marketing Communications Essex: Prentice Hall

Cases of MC from Turkish Public Relations Association.

MARKETING COMMUNICATIONSMARKETING COMMUNICATIONSPLANPLAN

MC PLANNINGMC PLANNINGMC plan is a document that summarizes the details of MC activities including relevant background

information and MC decisions.

HANDOUT 17.2MC PLANNINGMC PLANNING

Mission: is the reason that the company or organization exists. It may include a series of goals or objectives that the organization wishes to achieve or strive for.

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Mission descibes the present condition of the company, defines the business and the industry.

MC PLANNINGMC PLANNINGVision: closely related to the mission statement, but it looks to the future. Where does the company

see itself in the future? It can be developed with input from all of the company and the stakeholders.

(Ogden, p. 6-7)

MC PLANNINGMC PLANNING

Objectives: end results to be sought.Strategy: the general means by which objectives are intended to be achieved.Tactics: Details of how strategies are intended to be achieved.

8 PLANNING Q’S8 PLANNING Q’S• WHERE ARE WE NOW?• WHY ARE WE HERE?• IF WE CARRY ON WHERE WE WILL BE?• WHERE SHOULD WE BE?• HOW DO WE GET THERE?• ARE WE GETTING THERE?• DO WE NEED TO CORRECT OUR COURSE?• HAVE WE REACHED OUR GOAL?(p. 410)

MC PLANMC PLAN Situational Analysis: Research

Setting Objectives: Objectives

Strategic Decision Making: Strategy

Operational Decision Making: Tactics

Campaign Evaluation: ControlSITUATION ANALYSISSITUATION ANALYSIS

Where are we now?HANDOUT 17.4

• Company analysis

• Competitor analysis

• Consumer analysis

• Market analysis

• Product analysis

SITUATION ANALYSISSITUATION ANALYSISIt is basically the history of the company. It should include compnay’s growth, history, product offerings, sales volume, and markets. Also various environments that may have an

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impact on the organization. To fully understand the environment, the marketing department works with various other departments and does environmental scanning.

(Ogden, p.7)OBJECTIVESOBJECTIVES

What are we trying to achieve?

A marketing objective: To increase market share of brand A from x% to y% in z months.An advertising objective:To demonstrate the versality of brand A.

...OBJECTIVES...OBJECTIVES(SMARRTT)(SMARRTT)

Specific

Measurable

Achievable

Realistic

Relevant

Targeted

TimedHANDOUT 17.5

STRATEGYSTRATEGYHow could we get there?

Marketing strategy:By continuing to improve product quality on the dimensions of taste and colorAdvertising strategy: By giving examples of both in home and out of home usage

HIERARCHY OF EFFECTS MODELHIERARCHY OF EFFECTS MODEL-AIDA--AIDA-

• Awareness

• Interest

• Desire

• ActionTACTICSTACTICS

What specific activities do we to do to get there?

Tactics are the details of strategy. In MC tactics are the communications tools such as advertising, PR, direct mail etc.The tactics in the marketing communications plan list what happens, when and for how much.

..FACTORS AFFECTING TACTICAL MC MIX CHOıCE..FACTORS AFFECTING TACTICAL MC MIX CHOıCE

• Product life cycle

• Innovation diffusion

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• Type of product

• Involvement

• Hierarchy of effectsCAMPAIGN MANAGEMENT: ACTIONCAMPAIGN MANAGEMENT: ACTION

What resources are needed to get there? The development and continuous monitoring of the campaign.

The planning of resource acquisition in terms of people and budgets.

The planning of resource development in terms of time and money.(p. 334)

CAMPAIGN EVALUATION: CONTROLCAMPAIGN EVALUATION: CONTROL Are we getting there? What was expected to happen? What did happen? What was the effect of adv as separate from other factors? What were the reasons for success or failure? What should happen next?

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNINGOutline1. Corporate Philosopy/Description of company and product

• Corporate goals and objectives

• General company and product history

• Company organization

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING2. Review of the consumer target market

• Demographics and lifestyle factors

• Product usage

• Heavy users

• Potential primary and secondary markets

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING3. Review of the business-to-business target market

• Target market segmentation

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING4. Sales Analysis

• Total sales

• Sales by brand or department

• Market share

• Store for Store sales for retailers

• Seasonality of sales

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• Sales by geographic territory

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING5. Product awareness and attributes

• Product awareness

• Product attributes

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING6. Purchase rate, buying

• Purchase rates of the product category and your comapny’s product by geographic markets

• Trading areas

• Brand loyalty

• Buying habits

• Trial and retrial

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING7. Distribution

• Retail

• Package Goods

• Business-to business

• Service Firms

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING8. Pricing

• Price of your product

• Sales by price point

• Price elasticity

• Cost structure

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING9. Marketing review of your company vs competition

• Competitive information

• Strengths and weaknesses

10 STEPS TO MARKETING PLANNING10 STEPS TO MARKETING PLANNING10. Demand Analysis

• Target market

• Geographical territory

• Consumption constraints

• Aver. purchase per year per consumer

• Total purchase per year in category

47

• Average price

• Your company’s market share

MARKETING PLANNINGMARKETING PLANNING(Summary)(Summary)

• Corporate Philosophy/Description of Company, Product...• Consumer Target Market• Business-to-Business Target Market• Sales Analysis• Product Awareness/Attributes• Purchase• Distribution• Pricing• Competition 10. Demand Analysis

48